1. Generally. Except as otherwise provided by this section in subsection 2, an individual whose state Maine taxable income determined as if the individual were a resident individual for the entire year is $2,000 or less is allowed a credit equal to the amount of the tax otherwise imposed on that individual by this Part. In no case may the this credit allowed by this section reduce an individual's state the Maine income tax liability to less than zero.

3. Returns not required. Notwithstanding section 5220 or any other provision of law, an individual who is eligible for this credit is not required to file a state Maine income tax return.

Sec. 54. 36 MRSA §5231, sub-§1, as amended by PL 1989, c. 871, §19, is further amended to read:

1. General. The assessor State Tax Assessor may grant a reasonable extension of time for payment of tax or estimated tax or any installment, or for filing any return, declaration, statement or other document required pursuant to this Part, on terms and conditions the assessor may require. Except as provided in subsection 1-A or for a taxpayer who is outside the United States, an extension for filing any return, declaration, statement or document may not exceed 8 months.

Sec. 55. 36 MRSA §5231, sub-§1-A, as amended by PL 1997, c. 404, §9 and affected by §10, is further amended to read:

1-A. Federal extension. When an individual, estate or trust is granted an extension of time within which to file a federal income tax return for any taxable year, the due date for filing the taxpayer's income tax return with respect to the tax imposed by this Part is automatically extended for an equivalent period. When a taxable corporation or a financial institution subject to the tax imposed by chapter 819 is granted an extension of time within which to file its federal income tax return for any taxable year, the due date for filing the taxpayer's income tax or franchise tax return with respect to the tax imposed by this Part is automatically extended for an equivalent period plus 30 days.

Sec. 56. 36 MRSA §5316, as amended by PL 1971, c. 622, §132, is repealed.